Today's News |
Burcon NutraScience Announces Execution of $10 Million Loan Agreement
Friday, June 24, 2022Company Profile | Follow Company
Vancouver, BC, June 24, 2022--(T-Net)--Burcon NutraScience Corporation (TSX: BU) (NASDAQ: BRCN), a global technology leader in the development of plant-based proteins for foods and beverages, announced today that it has entered into a loan agreement of up to $10 million.
The secured loan is provided by Large Scale Investments Limited, a wholly-owned subsidiary of Firewood Elite Limited, Firewood is wholly-owned by Alan Chan, a director of Burcon. Upon the satisfaction of certain conditions with respect to each tranche, the Loan Amount will be available in two tranches of $5 million each.
The net proceeds from the Loan will be used to continue Burcon's joint venture operations, commercialization efforts, for partnering discussions for its plant-based protein technologies, for continued research and development of Burcon's protein extraction and purification technologies, for work on Burcon's intellectual property portfolio and for other general corporate purposes.
"We are pleased to have arranged this non-dilutive financing with a major shareholder of Burcon," said Peter G. Kappel, Burcon's interim CEO and Chairman of the board, adding that, "We've laid the groundwork for additional strategic partnerships and with this support, we can continue our commercialization efforts."
The Loan Agreement was conditionally approved by the TSX on June 17, 2022.
About Burcon NutraScience Corporation
Burcon is a global technology leader in the development of plant-based proteins for foods and beverages. With over two decades of experience formulating high-purity proteins that have superior functionality, taste and nutrition, Burcon has amassed an extensive patent portfolio covering its novel plant-based proteins derived from pea, canola, soy, hemp, sunflower seed, among other plant sources. In 2019, Merit Functional Foods Corporation was established between Burcon and three veteran food industry executives. Merit Foods has since built and commissioned a state-of-the-art protein production facility in Manitoba, Canada that is producing, under license from Burcon, best-in-class pea and canola proteins for the food and beverage industries.
Additional Information on This Financing
Firewood is an insider and related party of Burcon as it currently indirectly holds 22,866,574 common shares of Burcon, representing approximately 21.03% of the outstanding Common Shares. In addition, Alan Chan, a director of Burcon, is also a director of Firewood and Large Scale Investments. The Loan is considered a "related party transaction" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101").
Burcon is relying on the exemption available under Section 5.7(1)(f) of MI 61-101 minority shareholder approval requirement. Additionally, the Loan is exempt from the formal valuation requirement of MI 61-101 since it is a related party transaction under section (j) of the "related party transaction" definition of MI 61-101. The Loan Agreement was approved by the independent members of the board of directors of Burcon, with Mr. Alan Chan abstaining from the vote. Burcon will file a material change report containing the prescribed disclosure under MI 61-101 on or before June 30, 2022.
Forward-Looking Information Cautionary Statement The TSX has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. [ MORE ] |
Company Snapshot |
||
Burcon NutraScience Corporation
Vancouver (Biotech/Life Sciences)
|
Other Recent Company News |
|||||||||||||||||||
|